RESEARCH INSIGHT

GENERAL OVERVIEW

ABOUT
HDFC Bank Ltd. is an Indian banking and financial services company headquartered in
Mumbai, Maharashtra. It has a base of 111,208 permanent employees as of 30
September 2019. HDFC Bank is India’s largest private sector lender by assets. It is the
largest bank in India by market capitalisation as of February 2016.HDFC Bank is one of
the indian’s leading private banks and was among first to receive approval from Reserve
Bank of India(RBI) to set up private sector bank in 1994.Today HDFC as a banking
network of 5314 branches and 13541 ATM’s spread across 2768 cities and towns.

Core Values
Excellence Customer Focus Product Leadership

People Sustainability
BUSSINESS
1.Wholesale Banking

2.Retail Banking

3.Treasury

AWARDS
1. Euromoney award for excellence 2019
2. Governance Now BFSI 2019
3.Indias Best Bank 2018
4.Digital Banker of the year
 MANAGEMENT
1.Aditya PurI 13.Nirav Shah

2.Kaizad Bharucha 14.Parag Rao

3.Abhay Aima 15.Rajesh Kumar

4.Arvind Kapil 16.Rakesh Singh

5.Arvind Vohra 17.Rahul Shukla

6.Ashima Bhat 18.Sashidhar Jagdishan

7.Ashish Parthasarthy 19.Vinay Razdan

8.Ashok Khanna

9.Bhavesh Zaveri

10.Chakrapani V

11.Jimmy Tata

12.Munish Mittal
 SWOT ANALYSIS
STRENGTHS
1.Superb Performance in New Markets – HDFC Bank Limited has built expertise at entering new markets and
making success of them. The expansion has helped the organization to build new revenue stream and diversify
the economic cycle risk in the markets it operates in.
2.Strong distribution network – Over the years HDFC Bank Limited has built a reliable distribution network that
can reach majority of its potential market.
3. Strong Free Cash Flow – HDFC Bank Limited has strong free cash flows that provide resources in the hand
of the company to expand into new projects.
4.Strong dealer community – It has built a culture among distributor & dealers where the dealers not only
promote company’s products but also invest in training the sales team to explain to the customer how he/she can
extract the maximum benefits out of the products.
5.Consistency of quality -Automation of activities brought in HDFC Bank Limited products has enabled the
company to scale up and scale down based on the demand conditions in the market.
6.Highly skilled workforce - Through successful training and learning programs. HDFC Bank Limited is
investing huge resources in training and development of its employees resulting in a workforce that is not only
highly skilled but also motivated to achieve more.
7.Reliable suppliers – It has a strong base of reliable supplier of raw material thus enabling the company to
overcome any supply chain bottlenecks.
WEAKNESS

1.Financial planning is not done properly and efficiently-The current asset ratio and liquid asset ratios
suggest that the company can use the cash more efficiently than what it is doing at present.
2.Limited success outside core business – Even though HDFC Bank Limited is one of the leading
organizations in its industry it has faced challenges in moving to other product segments with its present culture.
3.Investment in Research and Development is Low-Even though HDFC Bank Limited is spending above the
industry average on Research and Development, it has not been able to compete with the leading players in the
industry in terms of innovation. It has come across as a mature firm looking forward to bring out products based
on tested features in the market.
4.Days inventory is high compare to the competitors – making the company raise more capital to invest in
the channel. This can impact the long term growth of HDFC Bank Limited The profitability ratio and Net
Contribution % of HDFC Bank Limited are below the industry average.
5.Poor Demand Forecasting-Not very good at product demand forecasting leading to higher rate of missed
opportunities compare to its competitors. One of the reason why the days inventory is high compare to its
competitors is that HDFC Bank Limited is not very good at demand forecasting thus end up keeping higher
inventory both in-house and in channel. The marketing of the products left a lot to be desired.
6.uneffective Rural Presence - HDFC as been working greatly in urban areas but it rural presence is still not
very strong where as it’s competitors are expanding in rural and enjoying all its advantages.
7.Rapid fluctuating Share Price- This fluctuation in the share price continuously confuse the investors and
discourage them for investment in the company.
OPPORTUNITIES

1.Organization’s core competencies can be a success in similar other products field -A comparative
example could be - GE healthcare research helped it in developing better Oil drilling machines.
2.The new taxation policy-It can significantly impact the way of doing business and can open new opportunity for
established players such as HDFC Bank Limited to increase its profitability.
3.New trends in the consumer behavior-This can open up new market for the HDFC Bank Limited . It provides
a great opportunity for the organization to build new revenue streams and diversify into new product categories
too. 4.New environmental policies – The new opportunities will create a level playing field for all the players in
the industry. It represent a great opportunity for HDFC Bank Limited to drive home its advantage in new
technology and gain market share in the new product category.
5.New customers from online channel – Over the past few years the company has invested vast sum of money
into the online platform. This investment has opened new sales channel for HDFC Bank Limited. In the next few
years the company can leverage this opportunity by knowing its customer better and serving their needs using big
data analytics.
6.New technology-It provides an opportunity to HDFC Bank Limited to practices differentiated pricing strategy in
the new market. It will enable the firm to maintain its loyal customers with great service and lure new customers
through other value oriented propositions.
7.Opening up of new markets because of government agreement – the adoption of new technology standard
and government free trade agreement has provided HDFC Bank Limited an opportunity to enter a new emerging
market
THREATS

1.Demand of the highly profitable products- It is seasonal in nature and any unlikely event during the peak
season may impact the profitability of the company in short to medium term.
2.New technologies developed by the competitor or market disruptor-It could be a serious threat to the
industry in medium to long term future.
3.No regular supply of innovative products – Over the years the company has developed numerous products
but those are often response to the development by other players. Secondly the supply of new products is not
regular thus leading to high and low swings in the sales number over period of time.
4.Rising raw material can pose a threat- This can have a huge effect on the HDFC Bank Limited profitability.
5.Imitation of the counterfeit and low quality product- It is also a threat to HDFC Bank Limited’s product
especially in the emerging markets and low income markets.
6.Increasing trend toward isolationism in the American economy-That can lead to similar reaction from other
government thus negatively impacting the international sales.
7.Intense competition – Stable profitability has increased the number of players in the industry over last two
years which has put downward pressure on not only profitability but also on overall sales.
8.Shortage of skilled workforce- In the global market it is a threat to steady growth of profits for HDFC Bank
Limited in those markets.
COMPETITORS
CONCLUSION